Single Stock Futures

Anup Menon

THERE was active trading interest in single stock futures during the week. Single stock futures seems to be gaining preference in the derivatives market mainly on account of lesser complications in valuation and similarity to products that were in existence in the market earlier. The most actively traded stock futures were on Satyam computers, Digital Equipment, Infosys Technologies, Sterlite Opticals, Reliance Industries and Bajaj Auto among others.

The top three most actively traded contracts in the near maturity December class belonged to stocks from the technology sector namely Satyam Computer, Digital Global Software and Infosys Technologies.

On top of the list was the contract on Satyam Computers maturing in December. The weekly high and low value of the contract was at 276 and 238 respectively. Close to 20,700 contracts were traded during the week. The December contract on Digital Equipment also attracted market interest during the week. Close to 13400 contracts were traded during the week. The weekly high and low value for the contract was at 494 and 428 respectively.

The third most actively traded contract was on Infosys Technologies with maturity set to December. Volumes in the contract stood at around 7300 contracts. The range for the contract value during the week was between a high of 4594 and a low of 4110.

Among the medium maturity January contracts, the most actively traded contract was on Reliance Petroleum. Aggregate volumes in the contract stood close to 770 contracts. The market expectations for the stock varied between a high of 35 and a low of 32 during the week.

The second most active medium maturity contract was on Satyam Computers. Aggregate volumes stood close to 800 contracts. The market expectation of future value of the stock fluctuated between a high of 278 and a low of 242 during the week.

Very few contracts in the long maturity February class attracted market interest. Even in those where there was some trading interest, volumes were relatively lower.

The most actively traded among the February contracts was the contract on Reliance Petroleum. Total traded volumes in the contract stood at around 115. Market expectations on the value of the stock on maturity fluctuated between a high of 35 and a low of 32.